Unfazed by the disturbance to commercial shipping in the Red Sea, tyre major MRF is taking necessary steps to continue its growth journey driven by products and strategies, said Chairman and Managing Director K.M. Mammen.

“The disturbance to commercial shipping in the Red Sea is a challenge both for imports of essential raw materials and exports. Given this situation, MRF will take necessary steps to continue its growth journey,” he said, addressing shareholders at the 63^rd Annual General Meeting.

Asserting that the Indian economy was expected to carry on the growth momentum of the previous year, he said the raw material prices had started increasing steeply in recent months, which needed to be addressed suitably. Also, the industry had to cover the impact of extended producers’ responsibility imposed by the government.

He also said that during 2023-24 raw material prices remained favourable. As a result, MRF was able to avoid any price increases. In fact, MRF also gave a price reduction in its star product in the truck tyre range S3C8, which was welcomed by customers.

Talking about export markets, he said sales in FY24 were impacted due to unfavourable regulatory restrictions in certain countries, the Red Sea crisis, and a severe shortage of forex in few markets. As a result, MRF saw a marginal increase in export turnover to ₹1,874 crore from ₹1,866 crore in the year earlier period.

Mr. Mammen said in FY24 several initiatives were taken across various factories to improve efficiencies and optimise costs. As a result of the above, consolidated profit before tax increased to ₹2,787 crore from ₹1,070 crore. Taking into account the improved results, the board declared a total dividend of ₹200 per share.

At the AGM, the shareholders approved the reappointment of Samir Thariyan Mappillai and Cibi Mammen as directors.